UBS faces pressure to consider leaving Switzerland as capital reforms spark debate

UBS is facing mounting pressure to reconsider its Swiss headquarters, as activist investor Cevian Capital and other stakeholders warn that proposed capital reforms could make it “not viable” for the bank to remain in the country.

The Swiss government’s plans, announced in June, would require UBS to fully capitalise its foreign subsidiaries, with estimates suggesting the bank could be forced to hold as much as $26 billion in additional reserves.

Lars Förberg, co-founder of Cevian Capital, which owns 1.4 per cent of UBS, stated, “The board has the responsibility to ensure that UBS protects its competitiveness. Under the current proposals, it is not viable to run a big international bank from Switzerland. We therefore see no other realistic option but to leave.”

Förberg added, “The message from the Federal Council is clear: UBS is too big for Switzerland . . . I respect the Federal Council’s decision, but I do not understand it. It cannot be undone. Lobbyists cannot change that either. That effort can be spared.”

UBS has publicly criticised the proposed capital rules, arguing that they diverge from global standards and could undermine the bank’s competitiveness without enhancing financial stability. The bank’s chief executive officer, Sergio Ermotti, commented last week, “We want to continue to operate as a successful global bank based out of Switzerland,” but noted it was “too early” to comment on how UBS might respond to the reforms.

The prospect of relocation has prompted UBS to hold preliminary discussions with United States officials, exploring the possibility of moving its headquarters to a jurisdiction with a more flexible regulatory environment. While UBS maintains that its preference is to remain in Switzerland, the bank is actively considering contingency plans should the capital rules proceed as drafted.

Other investors have echoed Cevian’s concerns. A top 25 Swiss investor in UBS told the Financial Times that the lender should seriously explore moving its headquarters, while a senior executive at another Swiss bank said the Swiss government should take the threat seriously.

If UBS were to relocate, the United States or an EU member state are seen as likely destinations, given their legal and regulatory frameworks. However, analysts caution that such a move would be complex and could serve as a negotiating tactic in ongoing discussions with Swiss lawmakers.

The debate over UBS’s future highlights the tension between national regulatory ambitions and the realities of global banking. As Switzerland weighs its next steps, the outcome could have far-reaching implications for the country’s financial sector and its standing in international markets.



Share Story:

Recent Stories


Data trust in the AI era: Building customer confidence through responsible banking
In the second episode of FStech’s three-part video podcast series sponsored by HCLTech, Sudip Lahiri, Executive Vice President & Head of Financial Services for Europe & UKI at HCLTech examines the critical relationship between data trust, transparency, and responsible AI implementation in financial services.

Banking's GenAI evolution: Beyond the hype, building the future
In the first episode of a three-part video podcast series sponsored by HCLTech, Sudip Lahiri, Executive Vice President & Head of Financial Services for Europe & UKI at HCLTech explores how financial institutions can navigate the transformative potential of Generative AI while building lasting foundations for innovation.

Beyond compliance: Building unshakeable operational resilience in financial services
In today's rapidly evolving financial landscape, operational resilience has become a critical focus for institutions worldwide. As regulatory requirements grow more complex and cyber threats, particularly ransomware, become increasingly sophisticated, financial services providers must adapt and strengthen their defences. The intersection of compliance, technology, and security presents both challenges and opportunities.

Unleashing generative AI: A force multiplier for financial crime teams
This FStech webinar, sponsored by NICE Actimize sees industry experts examine the revolutionary impact of generative AI on financial crime operations, and provides actionable insights to enhance your compliance strategies.